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N908 Remark Code: No Refund, Drug Bought at MFP

N908 means no refund is owed on this Medicare Drug Price Negotiation Program claim because the drug was prospectively purchased at the maximum fair price. The discount was already given at purchase, so no after-the-fact refund is needed.

Quick facts

Code
N908 (RARC N908)
Status
Active In use since March 1, 2025.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): When reported, the adjustment reflects the refund that is not being paid. It is not a Medicare patient balance.
Official description
No refund because this drug has been prospectively purchased at the maximum fair price.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N908 means

Manufacturers can make the maximum fair price available in two broad ways. They can refund the pharmacy after dispensing, or they can sell the drug at the MFP to begin with. N908 applies to the second approach.

Since the pharmacy already paid the MFP when it bought the product, the manufacturer reports that no refund is due for this dispensing event. The drug-price discount is already in the pharmacy’s acquisition cost.

This remark is used only in the Medicare Drug Price Negotiation Program. You will not see it on medical claims, and it has nothing to do with the Medicare patient’s cost sharing, which is based on the MFP either way.

What to do

  1. Check your purchase records. Confirm the units dispensed came from stock bought at the MFP.
  2. Post the claim as settled if the records match.
  3. Challenge a mismatch. If the units came from inventory bought at a higher price, contact the manufacturer with invoices through the program’s dispute process.
  4. Keep inventory records clear. Mixed stock bought at different prices makes these determinations harder to verify, so tracking purchase channels by NDC and lot helps.

Codes that may appear with N908

  • CO-307 (Medicare Maximum Fair Price Standard Default Refund Amount Adjustment.): The standard default refund adjustment, which N908 says does not apply because of the up-front MFP purchase.
  • N907 (No refund because this claim has been identified as 340B-eligible with a ceiling price lower than the maximum fair price.): No refund because a lower 340B ceiling price applies.
  • N909 (Refund amount has been calculated using a methodology that differs from the Standard Default Refund Amount calculation ((Wholesale Acquisition Cost…): A refund was paid, but under a non-standard calculation.
  • N918 (No refund because CMS excludes prescription drug event records when a compound code indicates it is for a compounded drug.): No refund because compounded drug records are excluded.

N908 FAQ

What does prospectively purchased at MFP mean?

The pharmacy bought the drug from the manufacturer or wholesaler at a price at or equivalent to the MFP, so it did not pay a higher price that would need to be refunded.

Who sees N908?

Pharmacies and other dispensing entities that dispense selected drugs to Medicare Part D patients.

What if we paid full price?

Gather invoices showing your acquisition price and raise it with the manufacturer. A mistaken N908 can mean a missed refund.